2024 New Work Contract Regulations You Should Know

1️⃣ New Employee Assistance Plan: Starting from the second month without signing a contract, employees can claim double compensation, with a maximum of 11 months’ double pay as compensation if no contract is signed.

2️⃣ No Social Security Contribution During Onboarding: Employees must contribute to social security upon joining the company, even during the probation period.

3️⃣ Resignation Compensation:

  • Verbal dismissals are considered terminations and require compensation.
  • Regardless of the resignation method, employees are entitled to compensation.
  • Compensation is generally N+1 months based on the years worked in the company (N represents the number of years worked).
  • During negotiations for resignation, allowances and subsidies beyond the basic salary should be included.

4️⃣ Refusal to Pay Wages: Companies must pay wages, even if the employee worked for only one day. Failure to pay wages on time may constitute a crime.

5️⃣ Probation Period Regulations:

  • Labor contracts typically include a probation period.
  • The probation period is considered the contract period if only the probation period is specified.
  • Notice periods for termination during the probation period: 3 days for employees, with employers needing to provide reasons.
  • Probation period wages should not be lower than the local minimum wage.
  • Prohibits establishing a probation period in labor contracts.

6️⃣ Unilateral Job Change and Salary Reduction: Companies must obtain employee consent before making unilateral changes. If employees disagree, they can negotiate contract termination with compensation.

7️⃣ Labor Arbitration: While labor arbitration is possible, it’s time-consuming. It’s recommended to try resolving issues through negotiation.

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